4. A company estimates that its profit can be represented by the equation 50x P=²+5 where P is the profit and x represent the units to sell. Determine the following: a. The maximum profit. b. The break-even quantity.
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- A firm has a cost function C(x)=10x+107, where x represents the number of units produced. the firm's revenue function is R(x)=38x if x is equal to 78 find the firm's profit. round to the nearest whole numberFor a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…1-a. What is Harold’s ‘argon of safety (MOS) in dollars? 1-b. What is the margin of safety (MOS) ratio? 3. What is Harold’s margin of safety (in dollars) and operating profit if sales should fall to $510,000?
- 1.) what is the break-even in dollar sales? 2.) what is the margin of safety percentage? 3.) what is the degree of operating leverage ? (Round your answer to 2 decimal places.) 4.) using the degree of operating leverage and without changing anything, calculate the percentage change in net operating income if unit sales increase by 20% ?Suppose Firm X decides to decrease the price of Good A by 4%. Calculate the change in the quantity demanded (in units) of Good B, assuming that Firm X currently sells 5000 units of Good B.Change in Qd = if Ed = -2.5 and Ec = 1.5 for Good A, and Sales increased by 12% for Good BA company produces and sells a product. The company has found that the costto produce x units of the product is given by C(x) = 50x + 200 (in dollars),and the revenue from selling x units is given by R(x) = 100x - x? (in dollars).What is the number of units the company should produce and sell to maximize profit
- The price of a product is expressed as ?, PHP = 10 – 28? where ? is the demand. Which of the following correctlyexpresses the total revenue? 10 − 28?2 28? = 10 10? − 28? 10? − 28?2Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?which of the following occurs if a company decreases its selling price per unit? a. net income increase b. more than one of the answers would occur c. contribution margin ration increase d. break even point increase e. contribution magrin increase
- I. What is the break- even point in dollar sales? J. How many units must be sold to achieve a target profit of $7,500? K. What is the margin of safety in dollars? What is the margin of safety percentage ? L. What is the degree of operating leverage?Given the following information, answer the following questions. TR = $4.5Q TC = $3,500 + $2Q a.) What is the break-even level of output? b.) If the firm sells 1300 units what are its earnings or losses? c.) If sales rise to 2,300 units, what are the firm's earnings or losses?Given the following, solve the independent questions using the CVP analysis. Selling Price = 30 Variable Cost per Unit = 20 Total Fixed Cost = 60,000REQUIRED: 1 Find the following functions: • Total Revenue = [TR] • Total Variable Cost = [TVC] • Total Cost = [TC] • Total Profit = [TP] 2 What is the volume of production for the business firm not to incur any profit nor loss? 3 At zero quantity of production, how much is the total cost? 4 What is the volume of production if the company wants to earn 100,000 profit?